A neighbour of the family, who did not want to be named, said Mrs Macdonald was a commercial pilot.
The couple had three children who went to a local primary school, the woman said. She believed two of the children were aged 5 and 7.
A friend of the family told the Otago Daily Times: "I know the people involved particularly well, and I don't wish to make a comment."
Emergency services were alerted to the downed aircraft after the wreckage was spotted by a helicopter pilot near the north branch of the Motatapu River at 12.40pm. There was low cloud in the area yesterday.
Rescue teams - including police and the Wanaka LandSar team - were sent to the scene where the wreck of the Cessna 185 fixed-wing aircraft was lying precariously on a rocky bluff. After the wreckage was secured, the bodies of the four occupants were removed and taken to Wanaka for identification.
Inspector Olaf Jensen, Otago Lakes-Central area commander, said there had been no reports of a plane missing in the area during the day, and police were still trying to identify the route, pilot and passengers.
According to registration details, the plane was based in Christchurch, having been bought by Mr and Mrs Macdonald in 2009.
The Cessna 185 fixed-wing aircraft has had a variety of owners from around the world. Before it was bought by the Christchurch couple, it had received several upgrades - including a new engine, prop and modified wingtips. It had also had owners in Auckland and Wairarapa. Reports show it was used by pilots working for agricultural companies in Australia in the 1960s.
Several people linked to Mr and Mrs Macdonald would not comment last night.
A spokeswoman for Airways, which controls flight plans for airports in New Zealand, said it did not hold a plan for the crashed plane. "It's quite common place for an aircraft this size. They just follow visual flight rules in that case."
The Civil Aviation Authority [CAA] confirmed it was investigating the crash. Two safety investigators were due at the crash scene this morning, a spokesman said.
In 2006, Mr Macdonald commented on a CAA investigation report into a Cessna crash which claimed the life of Christchurch businessman Russell Smith and his wife Marian D'Eve the previous year.
The authority found Mr Smith, the pilot at the time, had disregarded basic aviation rules.
"If you're a private pilot and you want to go from point A to point B on a certain day and then you set off regardless of the weather, then you've got to learn you just can't do that," Mr Macdonald told TVNZ.
Further details about the crash would be released this morning, police said.